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Inland Transit Insurance Advantage

Open Policy

This inland marine
insurance policy also covers inland movement of consignments
for specified period of time which is usually one year. This
policy is suitable for companies with numerous transactions
throughout the year and provides continuous cover.

Losses of all kind

Provides
protection against different types of losses: •
Total loss of goods• Partial loss of goods•
Related expenses while still in transit.

An element of profit
can also be included in the sum insured which is allowed by
the insurers. This is referred to as mark up in Marine
Insurance parlance.

Why Claims Get Rejected?

Uncovered Perils

Typical examples include goods damaged during unloading
and loading or while in storage; damage due to labour strike;
and earthquake related damage. These perils can be covered if
the inland transit insurance is placed properly.

Inherent Vice

This refers to damage caused by a product’s instability
rather than external factors. For example coal tends to
self-combust, some oils solidify, and paper can disintegrate.
Inherent Vice is generally excluded but a discussion with
experts like us can give a clear sense of how to reduce Inherent
Vice risks.

Inadequate Packaging

Claims are often rejected if packaging material was
sub-standard or not customary. This can be contentious in claim
settlement. A good practice is to declare packaging upfront and
agree with the insurer that this is sufficient.

Claim Documentation

The insurer should be immediately informed about the
incident and provide all the documents such as an invoice,
insurance policy, bill of lading, packing list,
correspondence with carriers, damage certificate by carrier.

As the term suggests, specific policy covers a specific, single transit. Whereas, open policy covers for regular transit of goods on the same route for a specific period of time ranging from 3 months to a year.

Besides looking for the cover with minimum exclusions, do consider factors like the length of the journey, route of the journey (conditions of the road), the type of goods etc. Costs, of marine insurance in general, are low.

This particular policy covers multiple shipment or transit of the same consignment. For instance- transit of raw material to the factory to the transfer of finished goods to the buyer’s warehouse. In some cases this insurance can also cover goods stored in warehouses.